Letter
of engagement
It is both a requirement of the law relating to the provision of services and also good professional practice to set out clearly in writing the terms and conditions upon which we provide you with professional services.
This letter of engagement complies with this requirement. We would request that you carefully read through this letter to ensure there is no misunderstanding between us. If you agree to the terms and conditions set out, then please sign and return the spare copy to us. If there is any point upon which you require clarification, then please contact us. Under the Solicitors’ Account Rules (the Rules) we will not be able to commence work until we are in possession of a signed copy.
The purpose of this letter is to set out the
basis on which we are to act as reporting accountants to prepare a report for
the purposes of Rules in respect of your clients’ accounts for the period ended
31 March 2001 in accordance with the Rules. This letter does not extend to any
services other than preparing such a report, and any other services will be the
subject of a separate engagement letter.
This engagement letter is governed by and construed in accordance with English Law. The Courts of England will have exclusive jurisdiction in relation to any claim,dispute or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inappropriate forum , or to claim that those courts do not have jurisdiction.
Except as may be otherwise provided by law , any liability to any third party arising under the Contracts (Rights of Third Parties ) Act 1999 is hereby excluded.
1. Responsibilities of yourself
1.1 As Principal of the firm, you are
responsible for ensuring that your firm maintains proper accounting records
which comply with the Rules.
2. Responsibilities of the reporting
accountants
2.1 We shall plan our work in order to
prepare a report for the purposes of the Rules in accordance with the
procedures recommended by the Law Society and the professional bodies of
accountants.
2.2 In accordance with rule 38 of the
Solicitors’ Accounts Rules 1998, we are instructed as follows:
a) that we may, and are encouraged to report
directly to the Law Society without prior reference to you should we during the
course of carrying out our work in preparation of the accountant’s report,
discover evidence of theft or fraud affecting client money, controlled trust
money, or money in a client’s own account operated by a solicitor (or
registered foreign lawyer, or recognised body) as signatory; or information which
is likely to be of material significance in determining whether any solicitor
(or registered foreign lawyer, or recognised body) is a fit and proper person
to hold client money or controlled trust money, or to operate a client’s own
account as signatory;
b) to report directly to the Law Society
should our appointment be terminated following the issue of or indication of
intention to issue, a qualified accountant’s report, or following the raising
of concerns prior to the preparation of an accountant’s report;
c)
to
deliver to you with your report the completed checklist required by rule 46 of
the SAT1998; to retain for at least three years for the date of signature a
copy of the completed check list; and to produce the copy to the Law Society on
request;
d)
to
retain these terms of engagement for at least three years after the termination
of the retainer and to produce them to the Law Society on request.
e)
Following
any direct report made to the Law Society under a) or b) above to provide the
Law Society on request any further relevant information in our possession or in
the possession of your firm.
To the extent necessary to enable us
to comply with a) to e) above, you agree to waive your right of confidentiality.
This waiver extends to any report made, document produced or information
disclosed to the Law Society in good faith pursuant to these instructions, even
though it may subsequently transpire that we were mistaken in our belief that
there was cause for concern.
3. Scope
of the reporting accountants’ work
3.1 As reporting accountants our work will
not be an audit of the accounts in accordance with Auditing Standards.
3.2 In common parlance, this work is known is “a Solicitor’s Audit”. In the strict technical sense it is not an audit, and the nature of the work is fully described in 2.2 above. Accordingly our work as reporting accountants will not be an audit of the accounts in accordance with Auditing Standards.
3.3
As
part of our normal procedures we may request you to provide written
confirmation of any information or explanations given by you orally during the
course of our work.
4. Fees
4.1 Our fees are computed on the basis of
time spent on your affairs by the partners and our staff, and on the level of
skills and responsibility involved. Our fees will be charged separately for
each of the main classes or work described above, will be billed at appropriate
intervals during the year and will be due on presentation.
4.2 If, for any reason, it becomes necessary
for us to withdraw from the engagement. our fees for work performed will be
payable by yourselves.
5. Agreement of terms
5.1 We shall be grateful if you could confirm in writing, your agreement to the terms of this letter, by signing and return the copy to us, or let us know if they are not in accordance with your understanding.